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tv   Mad Money  CNBC  January 13, 2014 11:00pm-12:01am EST

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if you remember, i wasn't willing to dismiss that lousy jobs number that we got friday as easily as others. i said the clouds are upon us. then today, the clouds burst open. the rain fell down and they flooded out all of the good news that i still thinks deserves to get some of its due. let's accept the fact that the vast majority of the bad news stems directly from retail. what are the invisible positives? amazingly, amazingly the market didn't seem to give a fig about an important takeover announcement. suntori of japan, their acquisition of beam, yeah, jim beam for $16 billion.
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that's a 25% premium for what it went out on friday. this deal illustrates so much of what i like about this market. beam's a spotlight i've been highlighting as a textbook breakup. it broke itself up in a couple different companies, most notably fortune brands, home and security and beam the liquor company. this was a classic situation where the parts were worth more than the whole, like so many other stocks out there. now, i had thought in the book that fortune brands and home security, the faucet and cabinet maker, would be the one to catch a bid, in part because i felt until today, beam which makes jim beam, sauza tequila and whiskey. there's a huge appetite for branded merchandise and a private outfit can afford to pay upward -- think about it, that's an overseas company coming in and buying one of ours. cross border that's an out and out positive. i thought for sure it'd resonate
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throughout the market, but it didn't. part of a takeover wave that's not been seen around here in years, including foster wheeler, another cross-border play. and after the bell, charter's $61 billion offering for time warner cable. both bids seemed lowball to me. next positive, a huge rally in telco equipment maker juniper networks, courtesy of a stake taken by a very smart activist. here's a company that's been beaten up very badly. i mean holy cow, this has been a tough one to own. that's for years, because it repeatedly failed to execute on its inherent promise. don't i know it. in "get rich carefully" i've got a blow by blow analysis on how my charitable trust got smoked on this one as the company repeatedly made excuses for excuses after excuses for missing quarter after quarter. pretty much blaming its customers for not spending as much money as they used to. turns out, oh, they were still spending, just not with juniper. the money was going to cisco, its competitor.
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yes, i take myself apart at times in "get rich carefully." i want you to read about my mistakes and then not make the same ones. what's there to like about juniper now? how about the fact that elliot management has taken a 6% stake and wants some big changes to bring out value. just as the announcement has lifted the stock, it surged $1.78 to finish at $25, remember this is a new high on a miserable day. juniper isn't the only faltering technology name to be challenged by eliot. last week, we saw eliot strike out at river bend, which immediately took off from 17 to 20. that's a very big run. i think eliot's management moves tells you that down and out techs of which there are so many could be very undervalued if they have good balance sheets and lots of excellent customers. they just haven't been running their businesses that well. i think they haven't been hungry. nothing motivates management better than the attention of an activist hedge fund. finally, there was even good news in the health care space. remember how i said i lay out ten potential breakup plays in "get rich carefully," companies
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that should be restructured to bring out value. well, one of them's merck. and it seems that maybe merck read jim cramer's "get rich carefully." that's what they're doing, possibly exploring the sale of the animal health unit, which as i said in the new book, would create an immediate and substantial bump in the stock. and that's what happened today, with merck rallying to close at $53.12. that's the stock's biggest single day move in five years. plus, merck plans an early submission of its breakthrough cancer drug, again emphasizing how undervalued the stock really is. but now, let's take a step back. all of that good news, it didn't amount to a hill of beans -- >> sell, sell, sell -- >> thanks to one particular sector's now seemingly endless problems. retail. today's hideous moves in retail triggered by comments made at a consumer conference pretty much took our breath away. first, lululemon. holy cow, a company that you know i've been lukewarm on ever
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since legendary ceo christine day decided to depart, informing us that it had a meaningful decline in sales in january. so many people had high expectations for the stock that it got crushed, falling $9.90 or 16.6%. you know what, as bad as that was, i was surprised lulu wasn't down even more, because this was one of the most expensive stocks in the apparel universe going into today's session. we got an immediate spillover into all sorts of women's apparel and sports related attire including dick's, underarmour and nike. next came sodastream, which posted extremely disappointing numbers. i disliked this for ages, especially with soda sales slowing across the board, but lots of people like the machine and therefore also like the stock. that instinct totally betrayed you today as the company sales have been slowing for ages and the stock got beheaded losing 26% of its value. >> the house of pain. >> two others that people had
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high hopes for, ascena, formerly known as dress barn and bonton. they were hammered. bon ton being seriously gashed falling $2.09 or 13.9%. we have a million different excuses for these retail blowups. i even heard treacherous roads. thanks, bon ton, but in the end we have to ask whether the consumer has drastically cut back on shopping or simply decided to buy things online, which is something howard schultz, the ceo of starbucks talked about last week. schultz indicated people are checking prices and simply using the mobile phones to order the same goods online at the best prices. that's a secular sea change. now, i counter you can't order a triple venti cappuccino with skim wet online and expect to get a hot one. no matter, they took s bucks to the woodshed, too. it closed at $75.12.
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only macy's, which can bargain with the biggest suppliers to get the lowest prices, it produced a stronger number last week. it does have a terrific internet strategy. how bad was it out there? get this, wendy's, a stock i've been behind a long time, actually came out and preannounced sharply better than expected earnings. but you know what, there was zero pin action. the good news only applied to wendy's, up 6.4% today as every other retail restaurant chain i follow got hit. now the question is, can you consider these declines as part of a healthy reset of expectations for retail? that would be welcome news. or are these miserable reports simply part and parcel with the soggy jobs numbers we got on friday? or could this be the beginning of the end of shopping as we know it, as we're all addicted to amazon and amazon prime? i don't know. frankly, we don't have enough information yet. i mean, you would think i just could rule out the latter two,
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but i'm not. i think there are more shoes to drop. that said, we know from the decline in oil that the consumer's got some extra cash kicking around in their pocket. we know from the strength in housing and autos and hardware that the consumer's still spending, but maybe not as much in the mall. the market was shocked by these numbers and sellers overlooked a world of good as they stampeded for the exits. me, i say we're still working off last year's fabulous quarter and year, and people are using lulus and sodastreams as an excuse to -- >> sell, sell, sell -- >> everything. which by the way, has never, ever been the right way to invest. can i go to romaine in michigan? romaine? go ahead, romaine. >> caller: i've been pursuing a strategy of buy it when it retreats and sell when it goes up. in light of the fact they're getting ready to announce a dividend, is it now time for me to buy and hold as an investment?
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>> that is my take. my charitable trust which you can follow along has been adopting just that non-trading strategy towards gm. the weakness, i think, is a buy. this is not a great market right now, so it may not be the end of the weakness, but that's one that we think you should accumulate. sonny in illinois. sonny? >> caller: hey, jim, a big chicago blackhawks boo-yah to ya. >> hey. flyers have a winning record boo-yah. >> caller: long time fan and hey, i really love your new "get rich carefully" book. it's fantastic. >> thank you. we had 400 sold this weekend in costco. holy cow. big signing on wednesday night right here, 92nd street "y" in new york. what's up? >> caller: you're looking very dapper on the front cover. nice choice in suits. >> i had about ten suits, they picked that one. i took about -- there was like 3,000 pictures taken, maybe the biggest waste of time i've ever had. what's up? >> caller: hey. what do you think about health
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care obamacare community health? >> i think it's played out. i think it was last year's trade, i think it's over, i feel the same way about tenant. if you want to know what i think is a great obamacare play, you stay tuned, i've got it, i've found it and i think it's better than anything else in health care. there's good news out there. instead of the lulus and sodastreams, you know what, i respect the sellers. but the buyers will be back after we work off the overbought. not yet. "mad money" will be right back. >> coming up -- tax time? if there's one thing washington's good for, it's paperwork. that's why millions of americans will turn to tax preparers like h & r block to file their returns this year. could an investment here provide returns of its own? and later -- sneak attack, finishline stock jumped after an upgrade on wall street. will all the new year's resolutions aimed at shaping up
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cause the stock to sprint ahead, or is there already too much competition? find out in cramer's exclusive. plus, tech takedown. two silicon valley stars go head to head. are tweets or apple's tech toys the more promising investment for 2014? all coming up on "mad money." >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to
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so ally bank really has no hthat's right, no hidden fees.s? it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!! um... well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally.
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last year, thinking they could do their own taxes, americans left behind more than $1 billion. that's $500 on every single seat. not just in this stadium, but every professional football stadium in america. >> as if those numbers weren't bad enough, there were also
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plenty of people worried the affordable care act is about to turn tax season into an absolute nightmare, making it even more difficult for regular people to do their taxes without professional assistance. i can't fix the confusion, but i can help you try to profit from it. that's right. i've got the perfect tax season play on obamacare that's h & r block. hrb. all over the globe. one right next door to me. prepares 1 out of every 6 tax returns in the u.s. and with the new complexity introduced by the health care mandate, which requires you to pay the irs a hefty fine if you don't have insurance, i think 2014 could be a breakout year for these guys. the product is taking share from turbo tax. h & r block is trying to sell the bank biz. but it's been a huge headache for shareholders because it means h & r block is classified as a bank holding company, limiting the company's ability to buy back stock and reduce the dividend.
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once they sell the bank, i think they can return cash to shareholders, including raising the dividend, the stock could soar. let's take a closer look with bill cobb, the president and ceo of h & r block to hear more about his company's prospects going into tax season. welcome to "mad money." >> hi, jim, thanks for having me. >> thank you. >> the ad was very compelling. certainly more compelling until the chargers came back, probably the most compelling thing happening that afternoon. and we talked about the penalties. but if you want the money back from the government, you've got a very complicated credit thing to fill out. will most people even know how to get it? >> it's going to be difficult. it's very complicated. the law -- we believe that the affordable care act is the biggest change to the tax code in over 20 years. with all the regulatory changes, et cetera. this year, people really need to know what their situation is. it's going to affect them next year, because that's when you have to true up what people are calling the subsidy. jim, it's not a subsidy. it's an advanced tax credit. if you take -- if you take the insurance, you think of a subsidy like you get a grant
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from a college, no, it's an advance tax credit. you have to true that up against your actual income in 2014. you described it correctly. it's going to be a mess. >> you've got your emerald tie on. you do have a particular emerald credit card that might be able to tap into that tax credit? >> it's a debit card. and what we do is -- it's part of our tax preparation service. if you would like to take your refund on the card, we have all the features of a debit card. we are the third largest. last year we issued 2 1/2 million cards, we loaded almost $10 million in deposits on there. full feature and the lowest fees of any other debit card. it is a great way with a lot of banks trying to get out of banking, to use a product that is really on trend. >> when i ride the subway, i get a metro card, and as soon as it's done, i throw it away. if i finish my emerald card debit, why not just throw it away? why keep it? why go into business with you guys? >> well, your name is going to
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be on it, you're going to have all the features, you can use it in any way you want, a debit card. but what we found is people are reloading the card. it's so simple now. so many places you go to, you swipe the debit card, you go, you're not dealing with paper, not having to sign anything. and that's why we're finding that the usage of our emerald card continues to grow. >> let's talk about the company. you did something. you had this great meeting december 11th, and you did something that almost no one does. you literally said, listen, clutter, confusion, lack of direction. you were talking about your company. >> yes, i was. >> your company. you basically said, listen, we weren't doing it right, we weren't focused on our core competence. you're basically redoing the company to get it back to the way mr. block had it. >> that's right. mr. block, he's still alive, 91 years old, i talk to him all the time. and really, what we're back to is really a tax preparation company. our purpose is, you know, we look at life through tax, through the lens of tax, and we find ways to help. and i think that's really important today. some of the things we're looking at here, these are the size of
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-- this is the 1040 only. this is the guide, and 400 pages of this are instructions. we're good at this. we have a tax institute, we're good at individual tax and small business tax. we're not corporate tax experts, but we're there to help the individual clients, and that's really what we're all about is to try to navigate this stuff. >> at the same time, you are hamstrung by this bank. and i know you haven't necessarily been able to get rid of. is that 2014 business no matter what? will that be gone next year at this time? will it be gone? >> it's our belief it will be gone. the bank is open, it's providing all of our financial services, we're in the process of finding a partner. we're confident we'll be able to do that. we're working with our regulators, and i think ultimately, we're a retailer. we don't need to be regulated as a savings and loan holding company. and so that'll give us full flexibility on capital allocation, yet still provide the financial services we need for our clients. >> you have a very funny line here. when i first started and i was
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trying to do it myself and realized i couldn't, i had the shoebox of receipts, that's what i did. you've got a system now that gets rid of the shoebox. >> exactly. it's called my h & r block. and essentially it's a way for people to load up all that paper, the shoebox. you take a picture and load it into your account. >> i thought that was so smart. >> it's long overdue. we got it in last year and it's part of our process. and everyone who has taken it, loves it. our tax pros love it and all of the clients who have taken it. we're trying to push this more and more because it's a consumer convenience in this world. >> so many people saying bricks and mortar out of fashion. you keep putting up stores. why does it work for you with bricks and mortar out of fashion? >> because of all of this, the complications here. we are the fourth largest retailer in the country. >> that's amazing. >> we have more outlets than dunkin donuts or walgreen's. what happens is, if you look at the total tax preparation business, it's been the same for over ten years. about 40% of the people want to do it themselves, that's 60% of
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the people want assistance. that hasn't changed. which gives us the belief we can continue to drive that. but we're the tax preparation company that doesn't force people one way or the other. however you want to do your taxes, if you want to do it on your own, we have those services online, in retailers, et cetera. that's really what we pride ourselves on. >> how do i make it so that h & r block, when i tell people about the story, because i think it's great, because of your dividend policy. that it's more than a two-quarter story. in the month of september, you should still own the stock. >> well, hopefully you talked about the dividend, and hopefully, what we're trying to do is as we get into the emerald card, as our international business grows, it becomes more of a year round business. and we're confident it will be an excellent investment for years to come. >> excellent. i've got to tell you, this is a major turn, and it's welcome. it's really welcome. i did not like the old one. i did not understand it. this one i understand. >> thank you, jim. >> okay.
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thank you to bill cobb, ceo of h & r block. i think this is a very good story for all of 2014. stay with cramer. coming up -- fancy footwork. it's got more than 600 mall-based locations around the country, but can finishline keep ahead of the competition? cramer talks with the ceo just ahead. and later -- tweets or tech toys? twitter generated plenty of chatter when it debuted, and has delivered a nice gain. but after a 15% fall from its highs, some are wondering if it's time for an empty nest. is there another more fruitful investment that's ripe for the picking? all coming up on "mad money."
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on a tough day for the market, particularly retail. it's worth noting that few areas are more hit or miss right now than apparel, including athletic apparel. we saw lululemon fall to pieces today, but lulu may not be representative of the whole sector because there are some companies here that are doing incredibly well. take finish line, the high quality retailer of footwear and apparel. roughly 650 stores across the country, 27 running specialty stores located within macy's. this is a very well run company and last year the stock gave you a 50% return. finish line reported back on
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december 20th and the company delivered a 4-cent earnings beat off a 2-cent basis with revenues that roared 22.9% higher year-over-year and a phenomenal 7.1% increase in same store sales. beyond that, the company had strong results in running shoes and management raised guidance for the 2014 fiscal year. i think finish line could have more room to run as the company's up against easy compares going forward and the stock's trading at 14 times earnings. however, the retail stock world is horrendous right now. i've got to wonder whether anyone's immune. don't take it from me. let's check in with the president and ceo of finish line, to learn more about how his company's doing and where it's headed. welcome to "mad money." thank you so much for coming on the show. >> thanks for having me. >> thank you. what are you guys doing different? we had a series of retailers that came out because of the conference today and all said the things either in december or january really had fallen off a cliff. why has that not happened to finish line? >> well, jim, typically the business that we're in, sneaker business, is a business that somewhat isn't as challenged in tough times.
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i guess it's kids need sneakers. >> okay. >> and when the brands are doing a great job, the way they're doing right now with innovative products and some great stuff coming into the market, that also helps us to perform better. >> you're saying it's a bit of a hit business on top of a needs business? >> oh, for sure. for sure. the sneaker business as we've evolved over the last 20 years or so has become as much a fashion business as a performance business, especially in a chain like ours, mall-based. >> right. >> with a lot of kids 19 to 28, core consumer. >> last week howard schultz, ceo of starbucks, put out a memo to his partner saying that anything mall-based is seeing what may be a secular decline in traffic. at the same time, macy's reported and said that they're not seeing that decline. i know you're linked with macy's in some places. are you seeing a secular decline in traffic at the mall? >> the decline in mall traffic
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has been going on for a few years, and we're challenged by that. so we have to look for different means of distribution, of products. we need to get more productive in the malls. we've got to learn how to engage our customers who are coming in and convert them better. and those are all things that we've learned to do over the years. and it's just more intense. but now, omni channel presents you with the opportunity to go digital with your business, diversification of your portfolio enables you through macy's and through our running company initiatives to create growth again. >> all right, terry lundgren, the ceo of macy's spoke very highly of you. at the same time, in your conference call, evp and cfo ed wilhelm said we are tracking toward the low end of that range at macy's. is that just because the kinks are getting -- >> yeah. it's just about conversion. we've converted about 180 stores out of 450 that we will do. so we're about a third there in conversion.
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the stores that we've converted have done really well. the stores where we're just managing inventory, not as well. so when we get the branding done, we get our staffing in, i think we're going to have just a phenomenal business with macy's. >> okay. now, today stern agee, they have been critical, they upgraded you to buy, they raised estimates. they're talking about maybe the possibility that even though same-store sales were up, gross margins going down. maybe there's a gross margins could be bottoming out. is that possible? >> gross margins in our company, because of our relationships with the brands and us trading at the high end of the marketplace, the brands work with us to make sure that the margins, the inventory is managed, and we've even in the toughest times at the finish line, it hasn't been a margin gain. it's been about growth. >> okay. >> it's about sales and driving the sales. >> who's got the hot shoe? >> well, you know, it's certainly pretty hard to compete with nike. >> it is. >> nike's got a huge part of the
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market. they've got close to 70% of our business. but, having said that, we in an average finish line store today we have about 1,000 skus, about half of them are nike. so the underarmours and the adidas and the brooks and all the other brands, plenty of opportunity to do business with us, always looking for new initiatives. always wanting to be the first to the market with things. so those relationships across all of the brands are critical to us. >> you're known as a running shoe. i always want to know, is running ebbing? is it flowing? is it better to be more basketball than running? because, you know, we had a little piece this morning about michael jordan. 12 years after, he's still pulling them in, but i don't see any running figures that endorse shoes. >> well, we do about half of our men's business in running. >> okay. >> we do about a third of our men's business in basketball. and michael jordan's business is a very, very big and very important part of our business,
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and it always has. so we play in both. >> okay. >> just as our competitors play in both. >> okay. and just want to circle back to the notion of this underarmor. and the reason i do that is because underarmor had these revolutionary shoes when they were on. and you mentioned technology. when they have a new iteration of something different, do people say i want to try that underarmour shoe? because they seem to have a technological edge over everybody right now. >> well, everybody has some technology going on. >> okay. >> but the guys at underarmor are a very creative bunch, really trying hard to make a mark in the market themselves. so they're really coming hard, as they always have, and we want to be there. we actually have a technology in the stores now that's worked really well and there's some more coming down the road. >> my charitable trust owns nike, but i have a pair of the new under armours, but i love them, indoor gym only.
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finish line upgraded today by stern agee in a difficult retail environment. not everybody's getting it wrong. stay with cramer. ♪ [ male announcer ] what kind of energy is so abundant, it can help provide the power for all this? natural gas. ♪ more than ever before, america's electricity is generated by it. exxonmobil uses advanced visualization and drilling technologies to produce natural gas... powering our lives... while reducing emissions by up to 60%. energy lives here. ♪
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fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that parker. well, did you know auctioneers make bad grocery store clerks? that'll be $23.50. now .75, 23.75, hold 'em. hey now do i hear 23.75? 24! hey 24 dollar, 24 and a quarter, quarter,
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it is time.
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it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, you same the name of the stock, i tell you whether to buy or sell. play until this sound and then the "lightning round" is over. are you ready, skeedaddy? time for the "lightning round" on cramer's "mad money." start with shindig in california. >> caller: boo-yah, jim cramer. shindig in california. actions alerts plus subscriber and in the middle of your new book "get rich carefully." looking for a position in johnson controls after today's pullback. is time to get in or should i wait? >> i say breaking up is easy to do, and it says johnson controls is a buy. my charitable trust owns it as you know and i'm surprised the stock didn't go up today. but what did go up? i've got to tell you, i thought johnson controls would be up two bucks if we had a decent tape, instead it was down. can i go to valerian in florida? >> caller: boo-yah, jim. >> boo-yah. >> caller: how are you? >> i'm all right. how about you? >> caller: great.
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my question about a.l.e. with the dividend it pays, should i reinvest some of that dividend money in either health care stocks due to obamacare, or should i take it into retail such as cracker barrel? >> no, i want you to keep investing in the utility. keep turning the dollars in, don't take that -- that's how you really build wealth over time. i like the idea of diversifying away from just utility, but i want you to just -- always i want people to reinvest dividends. can i go to ozan in texas? >> caller: boo-yah from houston, texas. my company is ticker symbol amba, what do you say there, boss? >> i do not know ambarella. i don't know what it is. i've got to look up ambarella. carl in mississippi, carl? >> caller: yes, sir? >> you're up, carl. >> caller: boo-yah to ya. yes, sir. >> you know, that was a trade we recommended years ago, i am not recommending any chinese stocks
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right now other than baidu. can i go to lee in new jersey? please, lee? >> caller: hey, jim, from one jersey boy to another. >> indeed. >> caller: i'm looking for information on alny. i believe it closed at $90.87. do you see a further upside to this? >> i'm a big believer in intercept, when you get these big deals, when sanofi paid for a big stake, i think you take something off the table. you've got to do it. can i go to bill in wyoming, please, bill? >> caller: boo-yah, mr. cramer. >> boo-yah, bill. >> caller: coming from the state of wyoming where men are men and sheep are nervous. i'd like to talk to you about whole foods market, if we can. >> i'm going to say two things about whole foods, one people are going to like and one that people aren't. one is that i like it long-term. it's part of my eat and live
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long, healthy chapter in "get rich carefully." in the short-term, no one is saying that it's great, okay. so if i say that you should own it, it does not mean it's going to go up tomorrow. i've been pigeonholed lately for trying to have a longer term view and people just don't get it. tom in new york, tom? >> caller: b-b-b-boo-yah. >> wow, i should match you with another child's boo-yah, but i'm not miked up. what's up? >> caller: hey, jim, my question is about taser international, tasr. what do you think? >> they had this patent, i thought it was good news, i do like taser, we had management on, it's had a big move since then. i totally understand why it would take a little profit. but i like taser. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. coming up -- tech takedown. two silicon valley stars go head to head. are tweets or apple's tech toys
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what does 2014 hold for tech?
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specifically, the much owned and talked about apple, and the most wanted stock i know of at this moment among the momentum players, twitter. these are two of the most important tech stocks in the market. tonight we're going off the charts with carolyn boroden, happens to be one of my colleagues at i've said this before, going to say it again. it's crucial. you should never make any investing decisions based solely what you see in the charts. you have to do homework on the fundamentals of the underlying company, otherwise you won't have a clue about what to do. however, as i explained in my new book "get rich carefully," the charts can be useful to a style investor like myself. look, i want you to be just like me. and when i say fundamentalist, i mean warren buffett or ben graham, not fundamentalist like the taliban. you have to meld the two. let's start with apple which has become a value stock, the polar opposite of momentum-driven
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twitter. look at apple's weekly chart, the last time we checked in five weeks ago, she told us apple is running up against hurdles of resistance starting at 575. without a breakup over that hurdle, boroden said apple would be vulnerable to a corrective decline. and sure enough, after the stock stalled out, that's exactly what happened, which is one of the reasons we're right back with her. boy, did she nail this. how did she know precisely where apple would run out of juice? i explain this, but the short answer is that brodin's work is built on a series of ratios discovered fibonacci. 23.6%, 50%, 61.8%, they repeat themselves over and over again in nature and bizarrely also seem to show up in the charts, too. that's pretty amazing given that there's nothing natural about the stock market. what brodin does is look at the size and previous swings of a stock price and runs them through the filter of ratios to find the key levels. when she spots a bunch of these fibonacci ratios, that's how she
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knew the area above 575 would represent at least a short-term ceiling for apple. hits it, bounces. now the pullback boroden predicted has come true. what's next for apple? brodin still likes what the charts are saying about apple longer term and she's now looking for the right price and right time for you to get back in the stock. however, that doesn't mean the pain is over. thinking apple could fall to 511, or even drop to 490. and the long-term up trend would still be intact, meaning you can't panic, and that's why i like you to know the fundamentals, too. she's also seeing signs that suggest the rally in apple just might get going again some time soon. check out apple's daily chart, okay? on this one, these are areas, the areas represent over a dozen of brodin's fibonacci relationships forming a powerful floor of support right below where the stock's currently trading, and that tells her
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apple probably won't go much lower. she sees it running from 532 to 531. and where apple bottomed friday. and if that doesn't hold, there's another floor of support from 502 to 511. and there's still one more support at 490 to 498. wow. and if apple can rebound, the fibonacci method gives her a near term price target of 587 or even 603. longer term, she still sees the stock headed to 792. brodin can't predict exactly where apple will make its low and start rebounding, but the method can predict where it's likely to happen. maybe actually more important for you, when -- @jimcramer on twitter, people say when, when, when is the stock likely to turn around.
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take a look, take a gander at the time cycles. brodin can apply the same measure she used to predict price on the y axis to the time which is the x axis. she looks at how long previous moves have lasted, put those methods through her fibonacci meat grinder and gives her important dates, periods of time where the stock is more likely to change course. and we're right in the middle of one of these time cycles, running from january 10th, last friday to the 14th, tomorrow. in other words, the work suggests the bottom we're looking for in apple may already be at hand. if not, she sees another time window running from january 20th to 24th. however, the fibonacci queen won't get too excited about apple until she sees the stock deliver a rally like it looks like it has some staying power. still one more, take a look at the 30-minute chart of apple, where each tick in the chart represents a 30-minute interval. recently apple had a bunch of upward swings, none of which lasted for more than $13.89 of upside. so before she's going to bet on
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a rebound here, she wants apple to demonstrate that it can put up a sustainable rally with the swing that's worth more than 14 bucks, in other words, longer than any of these numbers, okay? if it can do that, that's when she thinks apple will be ready to work. she's got time and price going here. she says she's stalking apple, just waiting for the moment when the market confirms that a real rebound is at hand. enough apple, how about twitter, which is the embodiment of the social, mobile and cloud trend. one of the most important themes in "get rich carefully." noticed an interesting pattern in twitter. check out twitter's 30-minute chart where, again, every little tick represents 30 minutes of trading. brodin thinks twitter has made a two-step or zigzag pattern, which suggests to her that after being hammered pretty hard over the last few weeks, the stock might not have that much more downside. she sees a powerful floor of
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support running 54 to 56, and just like apple, twitter bounced hard off that floor today. even if that level doesn't hold, though, boroden sees another super zone from 54 to 53. if the current floor holds up, then her fibonacci method indicates that twitter could rocket up to $79. goldman sachs, the banker behind twitter ipo, raised the price target today saying business is accelerating. there's a fundamental peg to the story, too. although i still regard it as outrageously expensive versus every other cloud, social and mobile play, which is why i call it a cult stock. here's the bottom line, the charts as interpreted suggest that both apple and twitter could be nearing the point where they stop going down and start roaring. brodin wants to wait for more positive confirmation before she gets too enthusiastic, but according to her fibonacci method, apple actually could've already bottomed. i have to -- i'm tempted, tempted. apple looks enticing. my charitable trust owns it. although with all of this mall weakness, i wonder if some
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people are thinking the traffic to the stores could be slowing and that's why the stock doesn't have that $14 staying power. and for the more momentum oriented, twitter could be a good trade into more weakness, though. again, i think there are many other social, mobile and cloud plays that are far more attractive. can i go to jim in virginia, please, jim? >> caller: jim, hello. hey, i really love oracle. with its acquisition and responses and compendium, is this a cloud buy? >> you know, i've been wrong on oracle, right on oracle and i thought that oracle was not that good. that last quarter was good. if the stock pulls back, there will be buyers. i think that the company had a very good quarter and we've got to give them credit for that good quarter. apple and twitter, two very popular stocks, two very different trading patterns. what do the charts say? both could be ready to roar. remember, the fundamentals matter, and i'm not green lighting anything at this moment. stay with cramer.
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when you sign books for people, you learn an awful lot about what the public's banking on and what stocks they care about. the results are surprising to me and much more considered than you would expect. you don't get a lot of questions about 3d systems, the super red hot 3d printers. they aren't all that that focused on tesla, solar city or twitter. the cult stocks not meant to be as scornful as so many on twitter take it. what are we supposed to call
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them? the new blue chips? the wild ones? how about the red hots? maybe i should return to that appellation. there's nothing wrong with flagging the oddity of stocks that aren't selling on any ratio of sales or earnings or anything else other than buzz. that's the legacy of 1999, 2000. it can't be forgotten. what stocks are most asked about? the number one stock is bank of america, a very conservative choice if there ever were one. what do people like about it when i ask them? here's typical by the man who bought "get rich carefully" at costco on long island. i sat back and said totally, it is still way behind the group. after all, we know the stock's still behind where it was a couple of years ago, even as most bank stocks are well beyond those levels now. don't forget, reports this week, something that makes the whole group attractive going into earnings even if the yield curve is not yet ideal. i think the stocks can still get hit, though. what did the questioner follow up with? can they put through a big dividend? i said not immediately, but that is certainly what we're ultimately looking for. now, again, isn't that a
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remarkably thought out wish for a retail investor whom wall street would typically scorn? lots of people mention stocks that don't get talked about yet have remarkable -- remarkably consistent records. now, these are health care cost containment plays that many people are picking as big winners off the affordable care act. some ask that i do segments on these for "mad money" because they wanted more knowledge. i've got to get up to speed on this. mckesson was down nine today. lots of people wanted to know if yahoo could keep going and how much of the game was from ali baba. when i asked them, rather than answering, they all said pretty much to a person that it was the burgeoning ali baba stake and therefore the stock continued to go higher. they knew a lot more than you thought. many wanted to know if google could go higher and whether apple's better or worse than google. you don't have much time to answer the questions before the lines start surging, but i said they're different. apple's a value play and google's a momentum story.
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no one complained or tried to change my mind. finally, many own celgene or gilead. two stocks i've been behind for many years. some described it to me as core holdings. when celgene gave a mixed picture today, i bet many bought, not sold, which i think is the right thing to do. again, so much for thinking that retail investors don't know what they're doing. so much for not knowing how the professional game is played. these have been winners without super high valuations. although many, of course, said they wanted to find the next intercept. sorry, i didn't have one. sure, there were plenty that asked if rite aid and sprint were still good. sprint, short-term, i think it's way overbought, but with the help of soft bank, i think the combination of spectrum and deep pockets will mean there could be a longer term trial. the group might be self-selective as i'm sure they
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will be at the turn out of the 92nd street y this saturday when we spar after that night's "mad money." there were, indeed, a lot of boo-yahs to start each interchange, but i think the signings made a statement. investors want solid stocks that can go up for years, not days or alas minutes, like so many pros seem to crave. stick with cramer.
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something feels like we're slated to go down. the banks start tomorrow. i think they'll be good. will anyone care? i like to say there's always a bull market somewhere, i promise to try to find it for you here on "mad money." i'm jim cramer. i'll see you tomorrow! convicted bank robber who claims he's gone legit. >> mccant carried himself as somebody who was legitimate. he had the swagger of a rap promoter. >> narrator: mccant offers 30% returns on investments in his rap-concert-promotion business... >> he actually said to them, "you can stop the bleeding that you're suffering in the market if you invest with me." >> narrator: ...and investors are forking over their entire nest eggs. >> i liquidated my i.r.a., and it was to the tune of a million dollars. >> narrator: and later... mark anderson holds millions of dollars' worth of fine wine in trust for clients... until greed gets the best of him.


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